Forex news from the European morning session 16 June 2015

News:

  • Tsipras says Greece must get a viable deal from creditors
  • Greece to delay June IMF payment by 6 months - Bild
  • European Court of Justice says ECB OMT bond-buying plan is in line with EU law
  • Austrian chancellor Faymann will visit Greece to show "solidarity"
  • Eurozone considering emergency Greece summit for Sunday
  • Rumours that the rumour of an emergency EU meeting on Sunday is rumoured to be wrong
  • ECB says they welcome the European Court of Justice decision on OMT
  • IFO head Sinn says OMT court ruling is a "regrettable mistake"
  • ECB's Mersch welcomes ECJ decision on OMT
  • German who raised the OMT case says he can still stop the program in Germany court
  • Global recovery is weak says Spain's de Guindos
  • Swiss government sees 2015 GDP at +0.8% vs +0.9% prev forecast
  • Option expiries 10am NY cut today 16 June

Data:

  • May 2015 UK CPI +0.1% vs +0.1% exp y/y
  • UK PPI input May mm nsa -0.9% vs +0.6% exp
  • April 2015 UK HPI 5.5% vs 9.6% prior y/y
  • June 2015 German ZEW economic sentiment 31.5 vs 37.3 exp
  • Eurozone ZEW survey expectations June 53.7 vs 61.2prev
  • German CPI May final mm +0.1% vs +0.1% flash
  • Q1 2015 Eurozone employment 0.1% vs 0.1% prior q/q
  • Nikkei 225 closes down -0.64% at 20,257.94

Yes folks, it's been another fun day in the ever more fickle world of forex

It was a rinse n repeat start as USD buyers appeared sending EURUSD and GBPUSD lower but then European equity markets started to tumble and we saw the euro take off again with traders citing equity hedge unwinding as a prime mover

EURUSD jumped in a flash from 1.1280 triggering stops through 1.1300 to post 1.1330 taking with it EURGBP to 0.7251 and EURJPY to 140.00

But then as sellers appeared we got news that the European Court ruled OMT from the ECB as within mandate but still came down to 1.1280 compounded later by weaker ZEW and posting 1.1240 dragging euro pairs back down with it

Meanwhile the pound had been knocked off its perch by weaker than expected core CPI and PPI input prices and from an early rally to 1.5633 we were down at 1.5543 only to see a good rebound to 1.5616 as I type

Up n down n up and... Elsewhere USDJPY found itself pulled around by yen pairs, USDCAD has found 1.2350 a step too far and USDCHF has found rallies capped by EURCHF sell interest around 1.0500

AUDUSD and NZDUSD remain on the back foot, albeit not breaking lower but with sellers seemingly happy to take advantage of any rallies

FOMC tomorrow, on-going Greek farce, with a sprinkling of data will undoubtedly keep markets dancing on hot coals